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1. Determine the break-even point. 2. Compute the margin of safety and explain its significance. 3. Compute the degree of operating leverage at a
1. Determine the break-even point. 2. Compute the margin of safety and explain its significance. 3. Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income. = CVP Analysis-Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Calibri 11 AA % Paste Clipboard BIU- E Font Alignment Number Conditional Format as Cell Formatting Table Styles Styles Cells A1 X A fx Given the following information complete a CVP analysis Given the following information complete a CV analysis B C D E 2 for IPL, Inc. Unit sales price per unit Variable expenses per unit Fixed expenses 9Use the data to answer the following 30 11 1. Compute the CM ratio and variable expense ratio 12 Selling price per unit 13 Variable expenses per unit 34 Contribution margin per unit 16 CM rano 17 Variable expense ratio 39 2. Compute the break even point 20 Break even in unit sales 21 Break even in dollar sales 22 233 Compute the margin of safety 24 Marsin of safety in dollars 11,200 units $75 per unit $45 per unit $210,000 per unit por unit per unit units B x Sign In
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